Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

Banks expected to appeal bank charges ruling tomorrow

21 May 2008 / by Rachael Stiles

The banks involved in the High Court test case which ruled to allow the Office of Fair Trading (OFT) to challenge the legality and fairness of bank charges are expected to contest the decision tomorrow.

Nationwide Building Society is said to be actively considering making an appeal against the decision on 'unfair' bank charges, which could prolong a final decision for many more months, potentially into next year.

If the banks do not appeal and the OFT decides that the charges for unauthorised overdrafts and bounced cheques – sometimes as much as £39 – are unfair then they could be scrapped, to be replaced with ones that more accurately reflect the costs incurred by the banks.

The banking industry has been raking in a reported £3.5billion a year from bank charges, leaving many customers in even worse financial straits that they were before and causing thousands to make claims for a refund from their bank.

Since it was announced that the case would be settled in court, the Financial Services Authority has implemented a freeze on reclaiming bank charges, but consumer groups are urging disgruntled customers to continue making claims in the hope that the OFT emerges victorious.

Martin Lewis, creator of consumer revenge website MoneySavingExpert.com, said: "The volume of reclaimers is staggering; this truly is an armchair consumer revolution. It's hoped the banks won't delay the process further by appealing this decision.

Even if the banks do appeal the decision, the court has still ruled that bank charges are subject to the Unfair Terms in Consumer Contracts Regulation (UTCCR) 1999. So, "whatever happens in the Court," he said, "it's time the regulator, the FSA, lifted its hold on reclaiming and gave people a chance to get their money back."

The banks will have the opportunity to lodge their appeal at a case management conference at the High Court in London tomorrow.